German wholesale giant Metro AG achieved sales and adjusted EBITDA within its guidance range in its 2022/23 financial year and continued to implement its sCore growth strategy in a 'challenging environment'.
Metro AG reported sales worth €30.6 billion (in local currency) – up 5.6% year on year and in the upper half of its outlook range.
The company's adjusted EBITDA stood in the lower half of its guidance, declining to €1.2 billion, from €1.4 billion in the previous financial year.
The company attributed this decline to cost inflation, the expiration of positive post-transaction effects, the declining business development in Russia, and last year's cyberattack.
Dr Steffen Greubel, chief executive officer of Metro AG said, "Metro stayed on track in financial year 2022/23. Despite of a challenging market environment and strong figures from the preceding year, we successfully continued our growth strategy in the past financial year."
Metro also proposed a dividend €0.55 per share to its shareholders.
Annual Highlights
The company saw strategic customer sales share (HoReCa and trader) increasing to 74% from 71% last year, own-brand sales share increased to 22% (2021/22: 19%), and stock availability increased to 96% (2021/22: 95%).
Sales in the store-based business rose to €23.3 billion, up 0.2%, while delivery sales increased 11.7% to €7.1 billion and Metro Markets sales reached €0.1 billion (up 60.1%).
In Germany, reported sales rose 3.5% to €4.9 billion, while adjusted EBITDA declined to €135 million.
Sales in its West segment saw growth of 4.4% to €12.6 billion, driven by its good performance in France, Spain and Italy.
In Russia, sales in local currency declined by 7.9% due to what the company said was a 'reluctance to buy' as well as the cyberattack.
In the East segment, sales in local currency increased 11.2%, with almost all countries contributing to this growth.
2023/24 Outlook
Metro expects total sales growth of 3% to 7% for financial year 2023/24, with Germany likely to see growth below the guidance range.
The management board has also forecast a change in adjusted EBITDA in the range of -€100 million and €50 million compared to the financial year 2022/23.
"We therefore look confidently towards the achievement of our growth ambitions for 2030," Greubel added.
